(UNDATED) - Governor Mitch Daniels has dropped his proposal to build a toll road bypass east and south of Indianapolis.

He also has scaled back plans for a similar project in the northwestern corner of the state.

Daniels conceded defeat in a letter issued Saturday to legislative leaders. His decision comes in the face of vocal public opposition.

With the commerce connector of Central Indiana withdrawn and the Illiana Expressway scaled back, Daniels is proposing a privately managed toll road in the ten miles between I-65 and the Illinois state line.